Ask Question
13 March, 03:19

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal consumption expenditures ($4,800); imports ($370); exports ($240); gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?

+5
Answers (1)
  1. 13 March, 03:32
    0
    Percentage of Personal consumption expenditures is 70.07%

    Explanation:

    The most common way to measure the national income account is gross domestic product (GDP)

    GDP = C + I + G + (X - M) or

    GDP = private consumption + gross investment + government investment + government spending + (exports - imports).

    government purchases ($1,050) is government spending

    personal consumption expenditures ($4,800) is private consumption

    imports ($370)

    exports ($240)

    gross private domestic investment ($1,130) is gross investment

    GDP = $1,050 + $4,800+$1,130+$240-$370=6.850

    Personal consumption expenditures proportion is $4,800/6.850=0,7007

    in % = 70.07%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers